Abstract

Earnings momentum is a crucial topic in market efficiency research. Meanwhile, a company's sustainable performance serves as a key indicator for evaluating its ability to achieve long-term sustainable development. Analyzing data from SEED's sustainability evaluation database for Taiwan-listed firms (developed in collaboration with Taipei University and Taiwan Index Plus Corporation), this study investigates the impact of sustainable performance on earnings momentum during 2015-2020. Empirical re...

Abstract

This study examines the information content of three information characteristics (uniqueness, changes, and specificity) of key audit matters (KAMs) from the perspective of the earnings response coefficient (ERC) and value relevance. Based on data from Taiwan-listed company from 2016 to 2021, excluding the finance industry, we find that investors regard KAMs as a type of risk. From the perspective of the ERC, the uniqueness and specificity of KAMs reduce the amount of trust that investors have in...

Abstract

To improve the transparency and reliability of audit reports, auditors of listed companies in Taiwan have been required to disclose key audit matters (KAM) in their audit reports since 2016. Previous studies suggested that the disclosure of KAM is related to auditors' litigation. From the perspective of auditors' legal liability, when facing higher litigation risks, will auditors respond with more detailed communication of KAM in their audit reports? This study takes listed companies in Taiwan f...

Abstract

We investigate the effect of the target's book-tax differences on acquisition efficiency (performance) in the acquisition process. Using international data across 32 countries, the results indicate that larger book-tax differences of the target are associated with lower acquisition efficiency. Besides, we find that the adverse impact of the target’s large firm-specific book-tax differences on acquisition efficiency is reduced when the target demonstrates superior environmental, social, and gover...